I think you're alluding to security issues with renting bare metal hardware to potentially untrusted customers, right? I've often wondered about the security implications of that - think backdooring BIOS/UEFI or other component firmware. But there are many large providers that rent dedicated hardware without a hypervisor. Are they just ignoring these concerns, hoping that this kind of tampering would be rare anyway?
> What is your concern with virtualization in this context?
I'm not the parent poster, but performance was probably the concern. There's still some (marginal, these days) overhead with virtualization in general, and VT-d specifically.